10 Jul Why Custom Software Is The More Cost Efficient Choice
Choosing the right software for your business activities is never an easy task. The options for off-the-shelf packages can be overwhelming enough, but when coupled with the enticement of software custom built to your specific needs, the decision becomes just that bit harder. In this post we look at why going down the custom development route is often the most cost efficient choice.
You have probably looked into the advantages and disadvantages of using custom software over an off-the-shelf option. Chances are your business currently uses an off-the-shelf package. It has probably worked fine in some areas of your business, but you might be at the point where the software has fallen short. Or, maybe the off-the-shelf software is just not providing you with the exact tools that you need to get the job done in the most efficient manner.
You’ve probably thought about switching over to a custom software solution, but there is one major concern that has been stopping you: the cost. Namely, you’re worried it’s going to cost you more, and potentially balloon out of control. Whether your business is based in oil and gas, mining and construction, telecoms, or health, often times the most important thing it comes down to is all the bottom line.
The good news: using custom software can ultimately save you money and help generate additional revenue.
“Custom systems will always lead the field, with off-the-shelf software merely mass copies of successful bespoke designs.” – Chartered Institute for IT
Key Reasons Why Custom Is The Way To Go
The single biggest advantage of a custom option over its off-the-shelf counterparts is that it will be a system completely tailored to your specific needs. You’ve heard it before. The question is, why is this simple fact such a huge factor in making it the more efficient choice?
Let’s look at the key reasons:
- Custom software is created with the long term plans of a specific company in mind. If you are simply licensing software, you are at the whim of a development team that is working to please other companies, not just yours. They can’t know your specific needs.
- There are no per user fees. If you license software directly from Microsoft- for instance, Microsoft Dynamics CRM– it can cost upwards of $150 per user, per month, and you don’t even actually own the software. You have to keep paying to keep using. This results in a higher Total Cost of Ownership, or TCO.
- Everybody with boxed software is on the same playing field, but with software unique to your company, you gain a competitive advantage. You will have options specific to your business that competitors simply will not have access to without something custom made. So on top of saving the cost of paying for each and every user per month, you will be able to outpace the competition and bring in more money directly.
- Many software contracts operate on a tiered payment plan – in order to use more features, you pay more money for access to a higher tier. Microsoft Office works in this system. The problem is you don’t pay for individual features – instead you are forced to pay for prepackaged bundles. This can lead you to paying extra for features you don’t need. With custom software you are able to choose specific, exact features that you need, rather than paying for what you don’t.
- The addition of unnecessary features also brings up another potentially costly problem: security. The potential for unwarranted use is increased by having more access that simply isn’t needed.
- Training costs are another thing to consider, and the fact is when an application is created specifically for your qualifications, its use will be more natural for your staff.
- Using two different types of software in the same industry can also lead to problems. They might both be necessary to get the job done, but if the applications don’t work well together, you’ll need another solution to make it work. Custom software ensures a common platform to get the job done.
Ensuring Efficiency
The connection between all of these pieces is “efficiency.” With a more efficient business comes a more cost effective one. It sounds simple, but this efficiency is the result of careful planning. It’s up to both the company that needs the application and the company that designs it to communicate together effectively in order to make it work.
The software can only match the requirements given by the company that needs it. Like a business itself, a plan is needed if anything is going to get done effectively. Creating cost efficient custom software is no different. If the company’s needs aren’t communicated well enough, and there is no strategic plan in place, efficiency won’t be realised from the start, and it won’t get better from there.
This article from Information Week provides a few tips that can make sure you are getting the most out of the partnership between your business and your custom software developer, ensuring the most cost efficiency. The most important takeaway is a simple metaphor:
“Is the value of the Empire State Building a function of the price of steel and the labor hours that went into it?”
The overall benefit of your software is worth much more than an initial cost.
With a solid plan in place, a custom software solution can be designed with the future in mind and used for years to come – ultimately ending up as the more cost effective choice for your business.
Why not contact us to discuss your needs and let us help you develop the custom software your business deserves.
